LYTHAM ST ANNES is fast turning into a hot holiday destination with a boost in numbers of visitors -- and things are set to get even better.

Although Britain saw a slump in tourism last year, things were on the up for St Annes which is set to benefit even further from big investments.

In 2001 bed occupancy in the Fylde was 64.3 per cent compared with 59.5 the previous year.

And with more than £5 million being invested, the area could become even more of a tourist magnet.

£1.75million is being ploughed into the regeneration of St Annes centre, and £3.5million is being pumped into the continental-style cafe and restaurant area, known as the Wood Street Caf Quarter.

"The general impression we are getting from businesses in St Annes and Lytham is that they are doing good trade and they are managing to keep good occupancy levels." said Fylde tourism officer Paul Norris. "Work on the Square in St Annes isn't the only reason why people are coming.

"People have been visiting in reasonable numbers over the last few years. The hey-days of one-week and two-week holidays is gone, but the short-breaks market is very buoyant."

Work on the second phase of the St Annes project begins next month and is expected to take two and a half years.

Chairman of the Council's Economy and Development Policy Committee Coun Steve Mason said: "There's a long way to go but the momentum is gaining pace again.

"All this work by the council and our partners is about making St Annes a vibrant place which will be seen as interesting, distinctive and economically prosperous."

Makeover work to the central section of Wood Street is almost finished.

The newly refurbished area comprises new seating, new plants, new trees, lighting, stone pavements and gravelled forecourt parking areas as well as a stainless steel palm tree.

The scheme has also included the re-introduction of garden walls which, together with extensive landscaping, emphasise the concept of St Annes as "the garden town by the sea".

Coun Mason added: "It was not long ago that Wood Street presented a near derelict appearance -- now it is being revitalised and will flourish. Previously vacant shops on the north side of the Square are now fully occupied for the first time in six years and Park and Orchard Road are seeing investment and the opening of new business.

"While there is still much to be done the momentum will continue," he pledged.

Dave Wilkinson of the council's regeneration unit, added: "We are all really pleased with the way the Wood Street scheme has turned out and have had plenty of positive feedback."

Mr Norris added: "The inclusion of seaside resorts in the Government's tourism strategy, the regeneration work progressing in St Annes and investment in the hotels and attractions around the Promenade Gardens bodes well for the future." Contributors to the developments in St Annes include the North West Development Agency, English Heritage and the Lancashire Tourism Partnership.

On top of that, Fylde Borough has obtained £100,000 in lottery cash to refurbish the Promenade with fountains and Victorian-style benches.

Also set for completion in the near future are the installation of new children's play equipment and the refurbishment of the boating pool in association with the construction of the new RNLI lifeboat centre.

The council has just produced statistics to show the value of the holiday guide.

Visitors booking from the guide spent £7.3million in Fylde Borough. That is a return of £150 for every £1 spent on the guide.

The figures are the result of contacts with 3,000 recipients of the guide.